Daimler ag takes a ‘reality check’ on the robotaxis

FRANKFURT (Reuters) – Daimler ag has taken a “reality check” on the self-driving robotaxis”, recognizing that they are secure, turns out to be more difficult than we thought it would be in the middle of asking them about their future earnings potential.

Ola Kaellenius, member of the board of directors of Daimler AG, presenting the new Mercedes GLC the F-CELL at the Frankfurt Motor Show (IAA) in Frankfurt, Germany on September 12, 2017. REUTERS/Kai Pfaffenbach

The Chief Executive, Ola Kaellenius, told journalists on Thursday

Europe should “rightsize” their spending levels on robotaxis, and that the self-driving technology would be more likely to be used for commercial vehicles for the transport of goods to companies on a long-haul.

Car manufacturers are in place for the development of self-driving vehicles, Google has presented a prototype of a car in 2012, is a leading Europe in the development of an autonomous Brand.

The idea of fleets of robotaxis to be picking up and ferrying clients around the towns and cities have gained traction, driven by the stellar growth of ride services such as Uber, and the delivery of services to the business.

However, the costs and regulatory hurdles have spiraled, leading to a re-evaluation of the business potential of it.

“It has been a reality check is setting in here,” Kaellenius said.

To make sure that the self-driving cars will be 100% safe for use in crowded urban areas, appears to be more of a challenge than the engineers had assumed for a couple of years ago, ” he said.

Even if a Female is in a position to robotaxis are safe, and the benefits of the introduction from the busy road-coming of self-driving cars continue to be unclear, he added.

The full-scale, it would tie a lot of capital to a number of uncertainties around the potential upside,” he said.

“At this point in time, we are told that it is for the first time, it doesn’t make sense.”

Daimler has been looking for for a further development of the alliance with BMW’s semi-autonomous vehicle technology, and there’s also another project with supplier Robert Bosch [ROBG.UL] the perfect technique to be completely empty of cars.

Reporting by Edward Taylor, editing, Riham Alkousaa and Alexandra Hudson

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